The Majority of Small Livelihood Loans of 1 Million Won Are Taken by the 'Economic Backbone' 3040 Generation... Over Half

17,269 Online Applications
Among Them, 9,692 Are in Their 30s and 40s... 50s Account for 22%

On the 27th, citizens visiting the Jung-gu Central Microfinance Integrated Support Center in Seoul applied for loans from a small living expense loan product offering up to 1 million won with an annual interest rate of up to 15.9%. Photo by Kang Jin-hyung aymsdream@

The majority of those who completed advance reservations to visit during the first week of the small livelihood expense loan were found to be in their 30s and 40s. Since the 27th of last month, small livelihood expense loans have been implemented at 46 integrated support centers for low-income finance nationwide. The core of the program is to provide small livelihood expense loans of up to 1 million KRW to eligible individuals with credit scores in the bottom 20% or lower (KCB 700 points, NICE 744 points) and an annual income of 35 million KRW or less.

According to data submitted by the Korea Inclusive Finance Agency to Representative Choi Seung-jae on the 1st, a total of 25,399 applications were received during the three-day advance reservation period from the 22nd to the 24th of last month. Among these, 17,269 applications submitted via web and app required age information, and looking at the application status by age group, those in their 40s accounted for the highest proportion with 5,379 cases, representing 31.1%.

Those in their 30s accounted for 4,313 cases, making up 25%, the second largest share. The 50s age group accounted for 3,792 cases, representing 22%. Both the 20s and 60s age groups each accounted for 10%.

Representative Choi said, "The 30s, 40s, and 50s, who are the main pillars of economic activity, account for 78% of the small livelihood expense loan applications," adding, "As the recent trend of high interest rates continues and loans for low-credit individuals sharply decrease, the difficulties faced by low-income people are intensifying, leading some to turn to illegal private loans. In this context, small livelihood expense loans inevitably act like a much-needed rain across all age groups."